US inflation grows at fastest rate in months

The US Bureau of Labor Statistics has attributed 80% of the latest month-on-month rise in inflation to sharp increases in the gasoline index.

The consumer price index (CPI) rose by 0.4% in February on a seasonally adjusted basis. Over the last 12 months, the all items index increased 2.9% before seasonal adjustment.

It is the largest monthly increase in inflation since April 2011.

The bureau’s analysis of the increase revealed that it is largely due to rising energy costs, adding: “The gasoline index rose sharply in February, accounting for over 80% of the change in the all items index.

“The gasoline increase led to a 3.2% rise in the energy index despite a decline in the index for natural gas.”